Saudi’s ACWA Power and its partners kicked off the construction work at the world’s largest green hydrogen project in NEOM.
The partners announced a $900 million six-month contract for the engineering, procurement, and construction (EPC) of the project, according to ACWA Power in a Tadawul statement.
The company explained that in case financial closure was not achieved, resulting in project abandonment, ACWA Power’s maximum aggregate exposure could be up to $300 million.
The agreement will require “NEOM Green Hydrogen” and “Air Products Middle East Industries Gases Limited” to provide limited notice to proceed with the EPC contract within Saudi.
Peter Terium, Head of Energy Sector for NEOM, revealed to “Bloomberg” that Saudi is on its way to selling carbon-free hydrogen from a project worth 5 billion dollars in NEOM by 2026. He further noted that the US-based “Air Products & Chemicals” is in the process of building the facility soon.
Bloomberg estimated that the hydrogen market could be worth as much as $700 billion annually by 2050.
